Tel Aviv shines as research hotbed for corporate giants

Over 70 international R&D centers operate in Tel Aviv, which has doubled the number of centers in the city over the past five years.

Tel Aviv, known as the “Start-up City,” has doubled the number of international research and development (R&D) centers in the city over the past five years, jumping from 35 R&D centers in 2012, to 73 centers in 2017, serving as a home to 20 percent of all R&D centers in “Start-up Nation.”

These 73 international R&D centers provide over 6,200 jobs, introduce new capital and knowledge to the city’s well developed tech ecosystem and further elevate Tel Aviv’s global standing, according to a recent report by Tel Aviv Global based on data from IVC Research conducted in preparation for the DLD Tel Aviv Innovation Festival.

“The Tel Aviv ecosystem is considered a leader in the nurturing of entrepreneurial spirit and is home to a large amount of start-ups, collaborative workspaces and acceleration programs creating an attractive environment for international venture capital firms and R&D centers,” the report said.

The report also addressed the growth of the high tech sector in the city. Tel Aviv is home to 2,000 high tech companies which constitute about a quarter of the total high tech companies in Israel. These tech companies influence the local workforce, as 1 out of every 10 jobs in the city is in the high tech sector.

The report also identified a shift in the Tel Aviv start-up ecosystem. The rate of seed-stage companies has gone down and the rate of R&D-stage companies has gone up, in accordance with the overall trend in Israel. This shift in the composition of startups is evidence of a maturation of start-ups in the city and their progression from idea stage to a process of research and development.

The city’s global economic development unit, Tel Aviv Global, plans to focus on attracting even more big names to the city in 2018. A new municipal policy offers city tax breaks and a “red carpet” package – assisting entrepreneurs in all aspects of setting up international activity in the city.

Ron Huldai, Mayor of Tel Aviv-Yafo, stated that the city’s “start-up community has gained global recognition, and thanks to it, Tel Aviv-Yafo is recognized as one of the most attractive cities for technological development. The municipality invests in major efforts to promote our creative ecosystem with incentives that are meant to encourage our start-up community and signal how important it is in our eyes to Tel Aviv’s economy, its global positioning, and most importantly – the energetic spirit of its people.”